Exhibit 99.1

FOR IMMEDIATE RELEASE		4714 Gettysburg Road Mechanicsburg, PA 17055 NYSE Symbol: SEM

Select Medical Holdings Corporation Announces Results for
Third Quarter Ended September 30, 2009

MECHANICSBURG, PENNSYLVANIA — November 5, 2009 — Select Medical Holdings Corporation (“Select”) (NYSE: SEM), the parent of Select Medical Corporation, today announced results for its third quarter ended September 30, 2009.

For the third quarter ended September 30, 2009, net operating revenues increased 5.1% to $545.6 million compared to $519.2 million for the same quarter, prior year. Income from operations decreased 9.0% to $32.9 million compared to $36.2 million for the same quarter, prior year. Income from operations for the third quarter ended September 30, 2009 includes compensation costs of $22.0 million Select incurred associated with its initial public offering of common stock. Net income attributable to Select increased to $0.6 million compared to a loss of $0.8 million for the same quarter, prior year. Additionally, net income before interest, income taxes, depreciation and amortization, gain on early retirement of debt, stock compensation expense, long term incentive compensation and non-controlling interest (“Adjusted EBITDA”) for the third quarter increased 34.0% to $73.0 million compared to $54.5 million for the same quarter, prior year. A reconciliation of net income to Adjusted EBITDA is attached to this release. Loss per common share was $0.09 on a fully diluted basis compared to a loss of $0.11 per common share for the same quarter prior year.

For the nine months ended September 30, 2009, net operating revenues increased 3.7% to $1,666.3 million compared to $1,606.3 million for the same period, prior year. Income from operations increased 19.4% to $165.9 million compared to $138.9 million for the same period, prior year. Income from operations for the nine months ended September 30, 2009 includes compensation costs of $22.0 million Select incurred associated with its initial public offering of common stock. Net income attributable to Select increased to $45.4 million compared to $13.6 million for the same period, prior year. Additionally, Adjusted EBITDA for the nine months ended September 30, 2009 increased 25.0% to $242.3 million compared to $193.8 million for the same period, prior year. Earnings per share were $0.37 on a fully diluted basis compared to a loss of $0.07 per common share for the same period, prior year.

On an adjusted basis, income available to common stockholders was $0.09 per diluted share for the third quarter ended September 30, 2009 and $0.42 per diluted share for the nine months ended September 30, 2009. Adjusted income available to common stockholders excludes non-recurring items relating to Select’s initial public offering such as long term incentive compensation and stock compensation expense related to the grant of restricted stock; and gains related to the early retirement of debt. A reconciliation of net income per share to adjusted net income per share is attached to this release.

Specialty Hospitals

At September 30, 2009, Select operated 89 long term acute care hospitals and five acute medical rehabilitation hospitals. This compares to 88 long term acute care hospitals and four acute medical rehabilitation hospitals operated at September 30, 2008. For the third quarter of 2009, net operating revenues for all of Select’s hospitals increased 5.0% to $376.9 million compared to $358.8 million for the same quarter, prior year. Total patient days for the third quarter of 2009 were 248,504, admissions were 10,466 and net revenue per patient day was $1,489. This compares to 243,807 days, 9,977 admissions and net revenue per patient day of $1,446 for the same quarter, prior year. For the hospitals opened or acquired as of January 1, 2008 and operated by Select throughout both periods, patient days in the third quarter of 2009 were 231,509 and admissions were 9,710, compared to 234,112 days and 9,614 admissions in the same quarter, prior year. Adjusted EBITDA for the segment increased 31.0% to $64.4 million compared to $49.1 million for the same quarter, prior year. The Adjusted EBITDA margin for the segment was 17.1% for the third quarter of 2009, compared to 13.7% for the same quarter, prior year. The Adjusted EBITDA margin for the hospitals opened or acquired as of January 1, 2008 and operated by Select throughout both periods was 18.1% for the third quarter of 2009, compared to 16.0% for the same quarter, prior year.

For the nine months ended September 30, 2009, net operating revenues for all of Select’s hospitals increased 4.7% to $1,156.4 million compared to $1,104.7 million for the same period, prior year. Total patient days for the nine months ended September 30, 2009 were 757,487, admissions were 31,775 and net revenue per patient day was $1,500. This compares to 756,093 days, 30,891 admissions and net revenue per patient day of $1,434 for the same period, prior year. For the hospitals opened or acquired as of January 1, 2008 and operated by Select throughout both periods, patient days for the nine months ended September 30, 2009 were 705,692 and admissions were 29,570, compared to 728,733 days and 29,794 admissions in the same period, prior year. Adjusted EBITDA for the segment for the nine months ended September 30, 2009 increased 26.6% to $212.1 million compared to $167.6 million for the same period, prior year. The Adjusted EBITDA margin for the segment for the nine months ended September 30, 2009 was 18.3%, compared to 15.2% for the same period, prior year. The Adjusted EBITDA margin for the hospitals opened or acquired as of January 1, 2008 and operated by Select throughout both periods was 19.8% for the nine months ended September 30, 2009, compared to 17.3% for the same period, prior year.

Outpatient Rehabilitation

At September 30, 2009, Select operated 947 outpatient clinics. This compares to 965 outpatient clinics at September 30, 2008. For the third quarter of 2009, net operating revenues for the segment increased 5.3% to $168.8 million compared to $160.3 million for the same quarter, prior year. Adjusted EBITDA for the segment for the third quarter increased 27.4% to $20.9 million compared to $16.4 million for the same quarter, prior year. The Adjusted EBITDA margin for the segment for the quarter was 12.4% compared to 10.2% in the same quarter, prior year. Patient visits for the quarter were 1,126,096 compared to 1,106,529 for the same quarter, prior year. Net revenue per visit was $101 for both the quarter ended September 30, 2009 and the same quarter, prior year.

For the nine months ended September 30, 2009, net operating revenues for the segment increased 1.7% to $509.8 million compared to $501.4 million for the same period, prior year. Adjusted EBITDA for the nine months ended September 30, 2009 increased 12.0% to $67.5 million compared to $60.2 million for the same period, prior year. The Adjusted EBITDA margin for the nine months ended September 30, 2009 was 13.2% compared to 12.0% in the same period, prior year. Patient visits for the nine months ended September 30, 2009 were 3,385,733 compared to 3,430,138 for the same period, prior year. Net revenue per visit was $102 for both the nine months ended September 30, 2009 and the same period, prior year.

Initial Public Offering of Common Stock

On September 30, 2009, Select completed its initial public offering of common stock at a price to the public of $10.00 per share. Select sold 30,000,000 shares in the offering. The total net proceeds to Select from the offering after deducting underwriting discounts and commissions and offering expenses were approximately $279.1 million. A portion of the net proceeds from the offering were used to repay indebtedness and to make payments to executive officers under the Long Term Cash Incentive Plan, and any remaining proceeds will be used to repay additional indebtedness or for general corporate purposes. Because the closing and receipt of cash occurred on September 30, 2009, the repayments of indebtedness and payment under the Long Term Cash Incentive Plan were not made until October. As a result, we have reported a significant amount of cash on our September 30, 2009 balance sheet and we have reflected the mandatory repayment due under our credit facility as a current portion of long term debt.

On October 28, 2009, the underwriters purchased an additional 3,602,700 shares pursuant to their over-allotment option at a price to the public of $10.00 per share. The total net proceeds to Select from the exercise of the over-allotment option were approximately $33.9 million. A portion of the net proceeds from the exercise of the over-allotment option were used to repay indebtedness, and any remaining proceeds will be used to repay additional indebtedness or for general corporate purposes.

Conference Call

Select will host a conference call regarding its third quarter results on Friday, November 6, 2009, at 11:00 am EST. The domestic dial in number for the call is 1-866-783-2146. The international dial in number is 1-857-350-1605. The passcode for the call is 78893390. The conference call will be webcast simultaneously and can be accessed at Select Medical Holdings Corporation’s website http://www.selectmedicalcorp.com.

For those unable to participate in the conference call, a replay will be available until 2:00pm EST, November 13, 2009. The replay number is 1-888-286-8010 (domestic) or 1-617-801-6888 (international). The passcode for the replay will be 54139669. The replay can also be accessed at Select Medical Holdings Corporation’s website, http://www.selectmedicalcorp.com.

* * * * *

Select Medical Holdings Corporation is a leading operator of specialty hospitals in the United States. As of September 30, 2009, Select operated 89 long term acute care hospitals and five acute medical rehabilitation hospitals in 25 states. Select is also a leading operator of outpatient rehabilitation clinics in the United States, with approximately 947 locations in 37 states and the District of Columbia. Select also provides medical rehabilitation services on a contract basis at nursing homes, hospitals, assisted living and senior care centers, schools and worksites. Information about Select is available at http://www.selectmedicalcorp.com/

Certain statements contained herein that are not descriptions of historical facts are “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements due to factors including the following:

•

additional changes in government reimbursement for our services may result in a reduction in net operating revenues, an increase in costs and a reduction in profitability;

•

the failure of our long term acute care hospitals, or LTCHs, to maintain their status as such may cause our net operating revenues and profitability to decline;

•

the failure of our facilities operated as “hospitals within hospitals,” or HIHs, to qualify as hospitals separate from their host hospitals may cause our net operating revenues and profitability to decline;

•

implementation of modifications to the admissions policies for our inpatient rehabilitation facilities, as required to achieve compliance with Medicare guidelines, may result in a loss of patient volume at these hospitals and, as a result, may reduce our future net operating revenues and profitability;

•

a government investigation or assertion that we have violated applicable regulations may result in sanctions or reputational harm and increased costs;

•

future acquisitions or joint ventures may prove difficult or unsuccessful, use significant resources or expose us to unforeseen liabilities;

•

private third-party payors for our services may undertake future cost containment initiatives that limit our future net operating revenues and profitability;

•

the failure to maintain established relationships with the physicians in our markets could reduce our net operating revenues and profitability;

•

shortages in qualified nurses or therapists could increase our operating costs significantly;

•

competition may limit our ability to grow and result in a decrease in our net operating revenues and profitability;

•

the loss of key members of our management team could significantly disrupt our operations;

•

the effect of claims asserted against us or lack of adequate available insurance could subject us to substantial uninsured liabilities;

•

the ability to obtain any necessary or desired waiver or amendment from our existing lenders may be difficult due to the current uncertainty in the credit markets; and

•

the inability to draw funds under our senior secured credit facility because of lender defaults.

Investor inquiries:

Joel Veit, 717/972-1100

I. Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(unaudited)
For the Three Months Ended September 30, 2008 and 2009

		2008				2009				% Change
Net operating revenues		$	519,179			$	545,621				5.1	%
Costs and expenses:
Cost of services			441,395				448,702				1.7	%
General and administrative (a)			11,538				34,618				200.0	%
Bad debt expense			12,240				11,720				(4.2	)%
Depreciation and amortization			17,848				17,676				(1.0	)%
Income from operations			36,158				32,905				(9.0	)%
Gain on early retirement of debt			—				1,129				N/M
Interest income			93				2				(97.8	)%
Interest expense			(36,153	)			(33,451	)			(7.5	)%
Income from operations before income taxes			98				585				496.9	%
Income tax benefit			(111	)			(804	)			624.3	%
Net income			209				1,389				564.6	%
Less: Net income attributable to non-controlling interests			1,032				806				(21.9	)%
Net income (loss) attributable to Select Medical Holdings Corporation			(823	)			583				N/M
Less: Preferred dividends			6,290				6,667				6.0	%
Net loss available to common stockholders		$	(7,113	)		$	(6,084	)			14.5	%
Loss per common share:
Basic			($0.11	)			($0.09	)			18.2	%
Diluted			($0.11	)			($0.09	)			18.2	%

II. Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(unaudited)
For the Nine Months Ended September 30, 2008 and 2009

										%
		2008				2009				Change
Net operating revenues		$	1,606,263			$	1,666,328				3.7	%
Costs and expenses:
Cost of services			1,343,022				1,353,107				0.8	%
General and administrative (a)			35,843				60,278				68.2	%
Bad debt expense			35,300				33,678				(4.6	)%
Depreciation and amortization			53,175				53,346				0.3	%
Income from operations			138,923				165,919				19.4	%
Gain on early retirement of debt			—				16,445				N/M
Interest income			275				82				(70.2	)%
Interest expense			(109,603	)			(101,781	)			(7.1	)%
Income from operations before income taxes			29,595				80,665				172.6	%
Income tax expense			13,862				33,076				138.6	%
Net income			15,733				47,589				202.5	%
Less: Net income attributable to non-controlling interests			2,103				2,218				5.5	%
Net income attributable to Select Medical Holdings Corporation			13,630				45,371				232.9	%
Less: Preferred dividends			18,569				19,537				5.2	%
Net income (loss) available to common stockholders		$	(4,939	)		$	25,834				N/M
Income (loss) per common share:
Basic			($0.07	)		$	0.38				N/M
Diluted			($0.07	)		$	0.37				N/M

III. Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)

		December 31,				September 30,
		2008				2009
ASSETS
Cash		$	64,260			$	280,492
Accounts receivable, net			312,418				310,855
Current deferred tax asset			61,925				51,426
Prepaid income taxes			7,362				13,338
Other current assets			20,897				22,152
Total Current Assets			466,862				678,263
Property and equipment, net			471,065				458,897
Goodwill			1,506,661				1,507,223
Other identifiable intangibles			74,078				67,473
Assets held for sale			12,542				11,342
Other assets			48,261				41,544
Total Assets		$	2,579,469			$	2,764,742
LIABILITIES AND EQUITY
Payables and accruals		$	339,446			$	305,234
Current portion of long-term debt			9,046				141,667
Total Current Liabilities			348,492				446,901
Long-term debt, net of current portion			1,770,879				1,521,394
Non-current deferred tax liability			42,918				54,733
Other non-current liabilities			67,709				60,648
Preferred stock			515,872				—
Total equity			(166,401	)			681,066
Total Liabilities and Equity		$	2,579,469			$	2,764,742

IV. Condensed Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
For the Nine Months Ended September 30, 2008 and 2009

		2008				2009
Operating activities
Net income		$	15,733			$	47,589
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			53,175				53,346
Provision for bad debts			35,300				33,678
Gain on early retirement of debt			—				(16,445	)
Loss (gain) from disposal of assets			(316	)			550
Non-cash stock compensation expense			1,697				4,795
Amortization of debt discount			1,101				1,239
Changes in operating assets and liabilities, net of effects from acquisition of businesses:
Accounts receivable			(74,975	)			(32,033	)
Other current assets			5,465				(982	)
Other assets			11,375				4,018
Accounts payable			(4,917	)			(8,366	)
Due to third-party payors			(9,328	)			(3,530	)
Accrued expenses			(9,541	)			(1,024	)
Income and deferred taxes			9,204				10,612
Net cash provided by operating activities			33,973				93,447
Investing activities
Purchases of property and equipment			(35,770	)			(35,250	)
Proceeds from sale of business units			1,851				—
Proceeds from sale of property			743				1,341
Acquisition of businesses, net of cash acquired			(7,402	)			(381	)
Net cash used in investing activities			(40,578	)			(34,290	)
Financing activities
Proceeds from initial public offering, net of fees			—				282,000
Payment of initial public offering costs			—				(584	)
Borrowings on revolving credit facility			387,000				193,000
Payments on revolving credit facility			(357,000	)			(253,000	)
Payment on credit facility term loan			(5,100	)			(5,033	)
Repurchase of 7 5/8% senior subordinated notes			—				(30,114	)
Repurchase of senior floating rate notes			—				(6,468	)
Borrowings of other debt			—				5,184
Principal payments on seller and other debt			(4,015	)			(5,738	)
Repurchase of common and preferred stock			(612	)			(80	)
Exercise of stock options			90				24
Repayment of bank overdrafts			(7,217	)			(21,130	)
Equity contribution and loans from non-controlling interests			—				1,500
Distributions to non-controlling interests			(1,703	)			(2,486	)
Net cash provided by financing activities			11,443				157,075
Net increase in cash and cash equivalents			4,838				216,232
Cash and cash equivalents at beginning of period			4,529				64,260
Cash and cash equivalents at end of period		$	9,367			$	280,492
Supplemental Cash Flow Information
Cash paid for interest		$	123,285			$	115,901
Cash paid for taxes		$	4,704			$	22,441

V. Key Statistics
(unaudited)
For the Three Months Ended September 30, 2008 and 2009

										%
		2008				2009				Change
Specialty Hospitals (a)
Number of hospitals — end of period			92				94				2.2	%
Net operating revenues (,000)		$	358,838			$	376,859				5.0	%
Number of patient days			243,807				248,504				1.9	%
Number of admissions			9,977				10,466				4.9	%
Net revenue per patient day (b)		$	1,446			$	1,489				3.0	%
Adjusted EBITDA (,000)		$	49,137			$	64,381				31.0	%
Adjusted EBITDA margin – all hospitals			13.7	%			17.1	%			24.8	%
Adjusted EBITDA margin – same store hospitals (c)			16.0	%			18.1	%			13.1	%
Outpatient Rehabilitation
Number of clinics — end of period			965				947				(1.9	)%
Net operating revenues (,000)		$	160,303			$	168,751				5.3	%
Number of visits			1,106,529				1,126,096				1.8	%
Revenue per visit (d)		$	101			$	101				0.0	%
Adjusted EBITDA (,000)		$	16,405			$	20,898				27.4	%
Adjusted EBITDA margin			10.2	%			12.4	%			21.6	%

VI. Key Statistics
(unaudited)
For the Nine Months Ended September 30, 2008 and 2009

										%
		2008				2009				Change
Specialty Hospitals (a)
Number of hospitals — end of period			92				94				2.2	%
Net operating revenues (,000)		$	1,104,731			$	1,156,422				4.7	%
Number of patient days			756,093				757,487				0.2	%
Number of admissions			30,891				31,775				2.9	%
Net revenue per patient day (b)		$	1,434			$	1,500				4.6	%
Adjusted EBITDA (,000)		$	167,617			$	212,122				26.6	%
Adjusted EBITDA margin – all hospitals			15.2	%			18.3	%			20.4	%
Adjusted EBITDA margin – same store hospitals (c)			17.3	%			19.8	%			14.5	%
Outpatient Rehabilitation
Number of clinics — end of period			965				947				(1.9	)%
Net operating revenues (,000)		$	501,375			$	509,760				1.7	%
Number of visits			3,430,138				3,385,733				(1.3	)%
Revenue per visit (d)		$	102			$	102				0.0	%
Adjusted EBITDA (,000)		$	60,248			$	67,476				12.0	%
Adjusted EBITDA margin			12.0	%			13.2	%			10.0	%

VII. Net Income to Adjusted EBITDA Reconciliation
(In thousands)
(unaudited)
For the Three and Nine Months Ended September 30, 2008 and 2009

The following table reconciles net income to Adjusted EBITDA for Select. Adjusted EBITDA is used by Select to report its segment performance. Adjusted EBITDA is defined as net income before interest, income taxes, depreciation and amortization, stock compensation expense, long term incentive compensation, gain on early retirement of debt and non-controlling interest. We believe that the presentation of Adjusted EBITDA is important to investors because Adjusted EBITDA is used by management to evaluate financial performance and determine resource allocation for each of our operating units.

Adjusted EBITDA is not a measure of financial performance under generally accepted accounting principles. Items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted EBITDA should not be considered in isolation or as an alternative to, or substitute for, net income, cash flows generated by operations, investing or financing activities, or other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity. Because Adjusted EBITDA is not a measurement determined in accordance with generally accepted accounting principles and is thus susceptible to varying calculations, Adjusted EBITDA as presented may not be comparable to other similarly titled measures of other companies.

		Three Months Ended September 30,								Nine Months Ended September 30,
		2008				2009				2008				2009
Net income (loss)		$	(823	)		$	583			$	13,630			$	45,371
Non-controlling interest			1,032				806				2,103				2,218
Income tax expense (benefit)			(111	)			(804	)			13,862				33,076
Interest expense, net			36,060				33,449				109,328				101,699
Gain on early retirement of debt			—				(1,129	)			—				(16,445	)
Long term incentive compensation			—				18,261				—				18,261
Stock compensation expense
Included in general and administrative			469				4,111				1,616				4,594
Included in cost of services			36				90				81				201
Depreciation and amortization			17,848				17,676				53,175				53,346
Adjusted EBITDA		$	54,511			$	73,043			$	193,795			$	242,321
Specialty hospitals		$	49,137			$	64,381			$	167,617			$	212,122
Outpatient rehabilitation			16,405				20,898				60,248				67,476
Other (1)			(11,031	)			(12,236	)			(34,070	)			(37,277	)
Adjusted EBITDA		$	54,511			$	73,043			$	193,795			$	242,321

The following tables reconcile specialty hospital same store information.

		Three Months Ended
		September 30, 2008				September 30, 2009
Specialty hospitals net operating revenue		$	358,838			$	376,859
Less: Specialty hospitals in development, opened or closed after 1/1/08			13,386				27,995
Specialty hospitals same store net operating revenue		$	345,452			$	348,864
Specialty hospitals Adjusted EBITDA		$	49,137			$	64,381
Less: Specialty hospitals in development, opened or closed after 1/1/08			(6,161	)			1,265
Specialty hospitals same store Adjusted EBITDA		$	55,298			$	63,116
All specialty hospitals Adjusted EBITDA margin			13.7	%			17.1	%
Specialty hospitals same store Adjusted EBITDA margin			16.0	%			18.1	%

		Nine Months Ended
		September 30, 2008				September 30, 2009
Specialty hospitals net operating revenue		$	1,104,731			$	1,156,422
Less: Specialty hospitals in development, opened or closed after 1/1/08			36,456				79,885
Specialty hospitals same store net operating revenue		$	1,068,275			$	1,076,537
Specialty hospitals Adjusted EBITDA		$	167,617			$	212,122
Less: Specialty hospitals in development, opened or closed after 1/1/08			(17,587	)			(992	)
Specialty hospitals same store Adjusted EBITDA		$	185,204			$	213,114
All specialty hospitals Adjusted EBITDA margin			15.2	%			18.3	%
Specialty hospitals same store Adjusted EBITDA margin			17.3	%			19.8	%

VIII. Reconciliation of Net Income Per Share to Adjusted Net Income Per Share
(In thousands, except share and per share amounts)
(unaudited)
For the Three and Nine Months Ended September 30, 2008 and 2009

		Three Months Ended September 30,								Nine Months Ended September 30,
		2009				Per Share (a)				2009				Per Share (a)
Net income		$	1,389			$	0.02			$	47,589			$	0.78
Net income attributable to non-controlling interests			806				0.01				2,218				0.04
Net income attributable to Select Medical Holdings Corporation			583				0.01				45,371				0.74
Less: Preferred dividends			6,667				0.11				19,537				0.32
Net income (loss) available to common stockholders			(6,084	)			(0.10	)			25,834				0.42
Long term incentive compensation related to initial public offering			18,261				0.29				18,261				0.30
Stock compensation related to initial public offering			3,689				0.06				3,689				0.06
Gain on early retirement of debt			(1,129	)			(0.02	)			(16,445	)			(0.27	)
Estimated income tax expense			(8,778	)			(0.14	)			(2,321	)			(0.03	)
			5,959				0.09				29,018				0.48
Less: Earnings allocated to preferred stockholders			566				0.00				2,815				0.05
Less: Earnings allocated to unvested restricted stockholders			51				0.00				254				0.00
Adjusted net income available to common stockholders		$	5,342			$	0.09			$	25,949			$	0.43
Adjustment for dilution							0.00								(0.01	)
Adjusted net income available to common stockholders — diluted shares						$	0.09							$	0.42
Weighted average common shares outstanding:
Basic							62,078								61,030
Diluted							62,547								61,500